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Asset Class: China Equities
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Oldest ETF back tested: PGJ
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Long-Term Performance: 9.67% CAGR
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S&P 500 Performance: 8.74% CAGR
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Back test timeframe: January 2005 – July 2020
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Number of ETFs available in this asset class: 45
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Number of ETFs in this asset class that are 10-years old or older: 13
PGJ vs SPY: January 2005 – July 2020
PGJ vs SPY: December 9, 2004 – July 31, 2020
The Deep Value ETF Accumulator rankings for the 13 oldest China Equities ETFs:
The top 4 ranked China Equities ETFs head-to-head comparisons:
CQQQ vs PGJ vs FNI vs GXC: February 2010 – July 2020
CQQQ vs PGJ vs FNI vs GXC: December 8, 2009 – July 31, 2020
Stated objectives of the top 4 ranked China Equites ETFs:
CQQQ – The Invesco China Technology ETF is based on the FTSE China Incl A 25% Technology Capped Index (Index). The Fund will invest at least 80% of its total assets in securities that comprise the Index as well as American depositary receipts and global depositary receipts based on the securities in the Index. The Index includes constituents of the FTSE China Index and FTSE China A Stock Connect Index that are classified as information technology securities, including China A-shares and China B-shares. The Fund and the Index are rebalanced quarterly.
PGJ – The Invesco Golden Dragon China ETF (Fund) is based on the NASDAQ Golden Dragon China Index (Index). The Fund generally will invest at least 90% of its total assets in equity securities of companies deriving a majority of their revenues from the People’s Republic of China and that comprise the Underlying Index. The Underlying Index is composed of US exchange-listed companies that are headquartered or incorporated in the People’s Republic of China. The Fund and the Index are rebalanced and reconstituted quarterly.
FNI – The First Trust Chindia ETF is an exchange-traded fund. The investment objective of the Fund is to seek investment results that correspond generally to the price and yield, before fees and expenses, of an equity index called the ISE ChIndia Index™. Establish the total population of companies that are domiciled in either India or China and whose shares or ADRs are listed on a U.S. securities exchange. Remove companies that do not meet the component eligibility criteria which include minimum market capitalization and trading volume requirements. Rank the remaining stocks by their liquidity score. (Rank all eligible stocks separately by market cap and three month average daily dollar volume. Sum the ranks for each stock to get a liquidity score.) Select the top 25 stocks from each country by liquidity score. If less than 25 stocks are available for a country, then continue selecting stocks from the other country until a maximum of 50 stocks are selected. Weight according to the following methodology: top three ranked stocks in each country are weighted at 7% each, the next three in each country are weighted at 4% each, the next three in each country are weighted at 2% each and the remaining stocks are equally weighted. The ISE ChIndia IndexTM is rebalanced on the application of the above model on a semi-annual basis.
GXC – The SPDR® S&P® China ETF seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the S&P® China BMI Index (the “Index”). Seeks to provide the investable universe of publicly traded companies domiciled in China that are available to foreign investors. Publicly listed companies with a float-adjusted market cap of $100M and at least $50M in annual trading volume are included in the Index.
Thank you for taking time to read this article. If you found it useful, please share it with a friend.
Respectfully yours, Micah McDonald, aka the Deep Value ETF Accumulator
Previous Deep Value ETF Accumulator article on China Equities ETFs:
4 Best Long Term Performance China Equity ETFs 1.3
Disclosure: We currently own shares of FNI and we intend to sell these shares. We also intend to buy shares of CQQQ in the future. I am not a professional investment advisor. Please perform you own due diligence or seek the advice of a Registered Investment Advisor before investing in any security mentioned in this article. This website contains affiliate links to M1 Finance and Google AdSense.